Vegetable oil imports rise 28% in March

Vegetable oil imports rose an unprecedented 27.51 per cent in March as Indian edible oil processors and refiners filled their inventory amid fears of further price spurt. 

Total imports of vegetable oil surged to 641,141 tonnes in March this year consisting of 609,553 tonnes of edible and 31,588 tonnes of non-edible oil as compared to 502,827 tonnes comprises 421,686 tonnes and 81,141 tonnes of edible and non-edible varieties respectively in the corresponding month last year. 

According to data compiled by the Mumbai-based Solvent Extractors’ Association (SEA), overall import of vegetable oil during the first five month of the oil year (November - October) jumped 59 per cent to 3,592,692 tonnes from 2,264,497 tonnes during the same period of last year. 

“It is surprising that import is rising month to month inspite of huge stock at Indian ports and in pipeline, also ignoring price rise in last three months in international market. It seems the domestic oil availability has reduced due to lesser kharif crop and the current rape-mustard crop is not fully marketed as farmers are holding for the better price and in process import is rising to unprecedented level,” a SEA release said. 

It is also true with the lower price on account of zero duty, consumption has increased  substantially, it added. 

The import of edible oils jumped by over 15 lakh tonnes to 34.3 lakh tonnes so far this oil year as compared to 19.3 lakh tonnes during the same period of last year. 

Edible oil prices had touched the bottom during Nov-Dec’08, however recovered in last three months. Since January this year, the average imported prices of refined, bleached and deodorized (RBD) palmolein on Indian ports surged over 23 per cent to $800 per tonne from $650 per tonne. Similarly, crude palm oil, crude soybean oil and crude sunflower oil jumped to $725, $825 and $840 per tonne on April 13 from $563, $763 and $788 per tonne respectively in January this year. 

In domestic market, however, edible oils responded to local demand and supply with prices of RBD palmolein jumped 25 per cent to Rs 41500 per tonne as on April 13 from the average January prices at Rs 33380 per tonne. The price trend in crude palm oil, crude soybean oil, sunflower oil and rapeseed oil remained mixed at Rs 36500, Rs 43700, Rs 42500 and Rs 49000 per tonne as on April 13 from the average prices in January at Rs 28252, Rs 44016, Rs 43440 and Rs 56904 per tonne respectively. 

The vary purpose of withdrawal of duty on soybean oil in March is defeated with the rise in domestic prices of edible oils in last one month. 

“Import of RBD Palmolein is rising very fast and unfortunately, same is mainly used for unofficial blending with most of the domestic oils, being the cheapest in the market. This unethical blending, if not stopped by appropriate policy measures and checks, RBD Palmolein import will further increase adversely affecting domestic crushers and refiners,” the release said.. 

Import of sunflower oil is gaining the market share and reported at 286,337 tonnes in first five months compared to “nil” import during the same period of last year. This has pulled down the local prices of sunflower seed to Rs 1900-2000 per quintal much below the minimum support price (MSP) of Rs 2215 per quintal detrimental to the interest of farmers.